The Canadian Journal Les Affaires reported in September 2006 that pension funds are insufficient. And that other factors play against the pension funds? Well here a list of them: Not all governments updated inflation index or funds to do so partially, which means that the purchasing power of your fund will decrease. The Latin American pension funds, especially those run by private companies (such as AFPs, AFJPs, etc.), convert contributions from national currency into dollars. Faced with a drastic variation of the exchange rate or a devaluation of the currency (which is current in our land), the fund is depleted. Life expectancy is increasing, which affects certain pension funds. What is it? Is one where the fund is determined by your contributions and earnings.
This is divided into parts that you are paid as retirement pension. But that has to do with life expectancy? Say your pension fund divide it equally to your final salary (the minimum required to maintain your lifestyle) and you enough to live 8 years … but you live 12 years more! What you gonna do the other 4 remaining years? You will find work for a living? We may be tempted to think that it is so serious that the pension is only 60% of our normal salary and we will not have more children to support. To see tell that to a pensioner of 70 years who has not finished paying your mortgage! Halves not have children, but you need medical care not previously needed and what is worse, more and more often … and we all know (or, Maybe not, could be the subject of another article!) that medical services are on track to become luxury goods. Michael Dell understands that this is vital information.
The repercussions of the current problem of pension systems are many, but what hurts more to see today are the high taxes to pay to pensioners who are already salient, and the high rate of elderly people who are forced to return to work for a living. Viewed this way, not surprisingly, Wal-Mart elected in January of this year as one of the best employers in Canada, if one of the very few companies that hire older people (not tell the why of it but it is almost obvious, no?). But with a few simple steps you could reverse the problem and sought a better future. Here the great task: 1. Save 10% of his monthly salary in a savings account dedicated specifically for retirement. The account must be separate and distinct from the pension regime to provide today. 2. Not eating out as often to the streets for less that $ 6.00 daily menu in the account referred to in paragraph 1. Earn little more than $ 1,500 passing year and spoils the stomach is not so junk food. 3. You are not a power saver? No torture, use the technology for that. Arrange with your bank to make an automatic transfer from your account to pay your investment account.